The Asia-Pacific breakfast cereal market is growing at a CAGR of 3.8% during the forecast period (2020-2025).
- The growth of the market is primarily driven by the increasing trend towards the consumption of processed food products in developing countries of the Asia-Pacific region, which further signifies the increasing use of breakfast cereal ingredients. Health issues with regards to food habits have changed. People are opting for nutritive food items. Hence, the consumption of breakfast cereals has increased in the market.
- Furthermore, the robust growth of convenience stores that promotes brand visibility is driving the growth of the breakfast cereals market.
- However, the market is stagnated due to the consumer's equal inclination towards traditional breakfast foods, which is, therefore, restraining the growth of the market.
Key Market Trends
Rising Demand For Convenience Food In The Region
The demand for convenience foods is growing at a faster pace due to changes in social and economical patterns, as well as an increase in urbanization, buying power and awareness about health foods, changes in meal patterns and existing food habits, desire to taste new products. They are becoming extremely popular especially among working-class people, teenage children, people living in hostels, bachelors, and so on. Furthermore, recent innovations have led to the use of many traditional technologies like fermentation, extraction, encapsulation, fat replacement, and enzyme technology to produce new healthy breakfast cereals products and reduce/remove undesirable food components, and add specific nutrients.
China to Drive The Asia-Pacific Market
China dominates the market contributing to the maximum market share in the Asia-Pacific market, followed by Japan and Australia. This is due to the change in breakfast cereals consumption patterns and inclination towards healthier products. Muesli and granola remain the most popular type of RTE breakfast cereal in the Chinese market. Also, increased adoption of western lifestyle has paired the driving factors of the market sales. In addition, product development of low carb, high fiber, multigrain and fortified breakfast cereals that appeal to health-conscious consumers, along with launches of new flavors, from many brands, including Seamild, Ocak, and Wugumofang, introducing new fruit flavors, such as durian. have triggered market growth. Furthermore, marketing campaigns promoted by Nestle and Kellogg, the two leading international players in China, for several years have been effective at informing and educating Chinese consumers about the benefits of starting the day with a bowl of cereal.
The Asia Pacific market for breakfast cereal is fragmented, owing to the presence of large regional and domestic players in different countries. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. For instance, PepsiCo’s, one of the largest players in the Asia Pacific is expanding in health-orientated food categories and is strengthening its position in the category in China with the acquisition of a 26% stake in Natural Food International Holding Ltd, producer of the Wugumofang brand.
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